Supporting your employees and helping them to improve their financial health has never been more important.
but what exactly is ‘financial health’?
Financial health comprises many factors. It’s about helping your employees to feel comfortable with their current financial situation, ensuring they are able to pay their bills and cover any financial emergencies as they occur, as well as providing advice about savings and retirement.
In 2019, Close Brothers conducted research into employees attitudes towards their financial health and found that 94% of UK employees were suffering from money worries, with more than three quarters saying that money worries impacted them at work. In addition, their research found that over a third of people were unprepared for unexpected financial costs.
Is now the right time to be focusing on the financial health of your employees?
YES! The current global pandemic has lead to many unforeseen challenges, which will have undoubtedly lead to significant financial impacts on your employee’s lives. As your employees return to work, offering help will be very welcomed and will make them feel more valued as an employee. Improving an employee’s financial health can help to reduce their stress and be more engaged at work. Developing a positive attitude towards money and having a saving plan can really help employees to overcome unexpected financial hurdles.
Childcare is a major expense working parents continually face. The pandemic has reduced the formal and informal childcare options available, which has lead to parents paying more for the childcare they need to manage their work commitments. Financials shocks resulting from using childcare more or from higher costs, can really push employees into debt, leading to increased stress and worry.
The Childcare Cash Advance Scheme is a way in which employers can offer support to working parents to help manage the costs of childcare without getting into further debt. The scheme works in a similar manner to an interest-free loan to cover commuting costs. The scheme can be used to pay for a wide range of childcare and children’s activity costs, helping working parents to better manage their cashflow.
Once an employer had signed up to the scheme, which is quick, easy and secure, the scheme remains in place to offer support and flexibility to any employee, whenever it is needed.
Help is out there
Helping your employees to manage their financial health isn’t easy but to assist you, we’ve put together a list of ideas you could share with your employees:
- Automate bill payments and savings
- Use review and comparison sites to get the best deals for mobile phones, insurance, broadband etc.
- Use a budgeting tool such as the Catapillr income and expense cost calculator
- Encourage anyone who is struggling with debts to reach out for help. There are a number of charities who can provide support and we’ve provided a list below:
- Money Advice Service
- Citizens Advice
- StepChange Debt Charity
- Debt Advice Foundation
- National Debtline
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